1.1 Background
 
 Sun TV Network Limited (''Sun TV or ''the Company'') was incorporated on
 December 18,1985 as Sumangali Publications Limited. The Company is
 engaged in producing and broadcasting satellite television and radio
 software programming in the regional languages of South India.
 
 The Company is listed on the Bombay Stock Exchange (''BSE'') and the
 National Stock Exchange (''NSE'') in India. The Company currently
 operates television channels in four South Indian languages
 predominantly to viewers in India, and also to viewers in Sri Lanka,
 Singapore, Malaysia, United Kingdom, Europe, Middle East, United
 States, Australia, South Africa and Canada. The Company''s flagship
 channel is Sun TV. The other major satellite channels of the Company
 are Surya TV, Gemini TV and Udaya TV. The Company is also into the
 business of FM Radio broadcasting at Chennai, Coimbatore and
 Tirunelveli. The Company''s film production / distribution division ''Sun
 Pictures'' undertakes production / distribution of movies in the Tamil
 language.
 
 During current year, the Company released a blockbuster movie
 simultaneously in three languages titled ''Enthiran'' in Tamil and
 ''Robot'' in Telugu and Hindi''. The Company earned revenues of Rs.179
 crores, including Rs. 8 crores expected towards satellite rights which
 has not been included in the revenues in current year. The Company has
 spent Rs.132 crores on the production of this blockbuster.
 
 22.3 Quantitative information as per the Act
 
 Due to the nature of its business, the requirements relating to the
 quantitative details of sales and the information under paragraph 3, 4C
 and 4D of Part II of Schedule VI to the Companies Act, 1956 are not
 applicable to the Company except to the extent disclosed in these
 financial statements.
 
 1.2 Contingent Liabilities not provided for
 
                         31.03.2011       31.03.2010
 
 Income Tax*                  719.4           587.7
 
 Customs Duty**                 5.0             5.0
 
                              724.4           592.7
 
 * The Company received demands of income tax in respect of earlier
 years, disallowing the manner of allowance claimed by the Company for
 certain expenses. The Company has gone on appeal against the said
 demands, and based on judicial pronouncements and other arguments,
 management believes that the Company''s claim is likely to be accepted
 by appellate authorities.
 
 ** The Company has received demand for differential customs duty on
 account of incorrect classification of certain assets imported during
 FY 2007-08. The Company has gone on appeal against the said demand, and
 based on its arguments at such appellate proceedings, management
 believes that the Company''s claim is likely to be accepted by the
 authorities.
 
 1.3 Dues to Micro, Small and Medium Enterprises
 
 There is no overdue amount payable to Micro, Small and Medium
 Enterprises as defined under Micro, Small and Medium Enterprises
 Development Act, 2006. Further, the Company has not paid any interest
 to any Micro, Small and Medium Enterprises during the current and
 previous year.
 
 1.4 Leases
 
 Operating leases (As a Lessee)
 
 The Company has taken a KU band satellite transponder and office
 premises on operating lease. There are no escalation clauses in the
 lease agreements. Further, there are no restrictions imposed by the
 lease arrangements and there are no subleases.
 
 22.15 Employee benefit plans - Gratuity
 
 The Company has a defined benefit gratuity plan. Every employee who has
 completed five years or more of service gets a gratuity on departure at
 15 days salary (last drawn salary) for each completed year of service.
 The scheme is funded with an insurance company in the form of a
 qualifying insurance policy.
 
 The following tables summarize the components of net benefit expense
 recognised in the profit and loss account and the funded status and
 amounts recognised in the balance sheet for the Gratuity plan.
 
 The Company does not currently have any estimates of the contribution
 to be paid to the plan during the next year.  Accordingly, the same has
 not been disclosed.
 
 The overall expected rate of return on assets is determined based on
 market prices prevailing on that date, applicable to the period over
 which the obligation is to be settled.
 
 The estimates of future salary increases, considered in actuarial
 valuation, take account of inflation, seniority, promotion and other
 relevant factors, such as supply and demand in the employment market.
 
 1.5 Related party disclosures (to the extent not disclosed elsewhere
 in these financial statements)
 
 1.  Controlling Party
 
 Mr. Kalanithi Maran
 
 2.  Enterprises in which Key Management personnel or their relatives
 have significant influence
 
 Kal Comm Private Limited
 
 Kal Cables Private Limited
 
 Kal Investments (Madras) Private Limited
 
 Network Cable Solutions Private Limited
 
 Sun Direct TV Private Limited
 
 Sun Academy Private Limited
 
 Kungumam Publications Private Limited
 
 Udaya FM Private Limited
 
 Sun 18 Media Services South Private Limited
 
 Kal Airways Private Limited
 
 Kal Holdings Private Limited
 
 Kungumam Nithyagam Private Limited
 
 Kal Publications Private Limited
 
 D.M.S Entertainment Private Limited
 
 HFO Entertainment Private Limited
 
 D.K. Enterprises Private Limited
 
 Sun Foundation
 
 Murasoli Maran Family Trust
 
 Kal Media Services Private Limited
 
 Spicejet Limited
 
 Sun Business Solutions Private Limited
 
 3.  Subsidiary Companies
 
 South Asia FM Limited
 
 Kal Radio Limited
 
 Sun TV Network Europe Limited
 
 4.  Associates
 
 AV Digital Networks (Hyderabad) Private Limited
 
 Asia.Radio Broadcast Private Limted
 
 Digital Radio (Kolkata) Broadcasting Limited
 
 Metro Digital Networks (Hyderabad) Private Limited
 
 Optimum Media Services Private Limited
 
 Digital Radio (Mumbai) Broadcasting Limited
 
 Deccan Digital Networks (Hyderabad) Private Limited
 
 Pioneer Radio Training Services Private Limited
 
 Digital Radio (Delhi) Broadcasting Limited
 
 South Asia Multimedia Private Limited
 
 5.  Key Management personnel
 
 Mr. Kalanithi Maran - Chairman and Managing Director
 
 Mrs. Kavery Kalanithi - Joint Managing Director
 
 6.  Relatives of Key Management personnel
 
 Mrs. Mallika Maran
 
 1.6 Export Obligation
 
 The Company has obtained licenses under the Export Promotion Capital
 Goods (EPCG) Scheme for importing capital goods at a concessional rate
 of customs duty. Under the terms of the scheme, the Company has an
 export obligation equivalent to eight times the duty saved to be
 fulfilled within a period of eight years from date of import of the
 capital goods.
 
 Accordingly, the Company currently has an export obligation aggregating
 to Rs. 2,028.8 million (March 31,2010 Rs. 243.9 million).
 
 1.7 Prior year comparatives
 
 Prior year figures have been regrouped wherever necessary to conform to
 the current year''s classification.